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The global cost of violence in 2016
was $14.3 trillion, which is equivalent
to 12.6 per cent of the world Gross
Domestic Product (GDP) or $1953
per person, and this is considered a
conservative estimate. If the world
reduced violence by only 10 per cent
then $1.43 trillion could be directed
to other economic pursuits, such
as stimulating business, investing
in education or health, or building
infrastructure. Just to highlight how
substantial this amount would be,
this is the equivalent of the total
economies of Switzerland, Belgium
and Denmark.
Syria is a prime example of the
economic impact violence has on
nations. In 2015, the conflict costs of
the Syrian civil war were equivalent to
54.1 per cent of its GDP. Conversely,
countries that experience greater levels
of peace have reaped the economic
benefits. The Sri Lankan civil war ended
in 2009 and the economic impact of
violence in the country has decreased
by more than 66 per cent since then.
In addition to its social and political
impact, violence and conflict imposes
enormous economic costs for
individuals, communities and nations.
Violence not only affects the broader
economy, it also affects business; with
higher levels of violence less businesses
are started, they are more likely to
fail and have substantially higher
overheads. Through recapturing some
of the money lost to violence and the
costs of containing it, a virtuous cycle
of peace can be created.
This is where the framework of
Positive Peace becomes a poignant
point of discussion in economic and
community development. Positive Peace
provides a framework to understand
and then address the multiple
challenges the world faces. Investment
in Positive Peace is transformational,
because it stimulates many layers of
society at once, creating the optimum
environment for human potential to
flourish as well as creating peace.
The Institute for Economics and
Peace has empirically derived eight
pillars of Positive Peace. High levels
of Positive Peace are associated with
higher per capita income, resilience,